 |
|
The Indian stock market experienced a significant decline on Tuesday, June 4th, resulting in a loss of approximately ₹26 lakh crore for investors. This sharp selloff was attributed to early trends in the Lok Sabha election results, which indicated a tighter race than exit polls had predicted.
The overall market capitalization of companies listed on the BSE fell to nearly ₹400 lakh crore around 11:05 am on Tuesday, compared to ₹426 lakh crore at the previous session's close.
Experts pointed out that the market had already factored in a significant majority for the NDA, as suggested by exit polls. However, the early results showed a different picture, leading to investor concerns.
Avinash Gorakshkar, Head of Research at Profitmart Securities, attributed the market's sharp fall to the disappointing early trends in the election results, which deviated from the exit poll predictions.
Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggested that the market's reaction could also be due to concerns about the potential shift in the government's policy priorities, with a focus on welfare rather than reforms.
At around 10:10 am, the Nifty 50 was down 4.67% at 22,177, while the Sensex had declined 4.96% to 72,674. The overall market capitalization of BSE-listed firms stood at nearly ₹400 lakh crore at that time.
In the previous session, the Sensex and Nifty 50 had witnessed robust gains in anticipation of a strong majority for the NDA.
It is important to note that the views and recommendations expressed in this article are those of individual analysts and experts, and investors are advised to consult with certified professionals before making any investment decisions.